Foreclosure Rates Modest In Matagorda County
Although the county is not seeing the same number of foreclosures as elsewhere the rate, when compared to last five years in this region, is high. The panacea seems to be a lower interest rates coupled with foreclosure prevention counseling action. The rates rose when the sub-prime mortgage was introduced and loans on house equity became legalized as well as popular. This is the opinion of some local realtors like Patsy Anderson representing an organization of realtors. However foreclosures in Matagorda County has not reached epidemic proportions. Each month there is anything from 5 to 13 foreclosures. Five years ago there were only 2 or 3. In 1980 the situation had taken a downward turn but now it is worse. Second mortgages on home equity have caused more and more people to lose the roof above their heads.
Home equity loans are being blamed for this rise of foreclosures in this region. It is aggravated when people lose their jobs or are compelled to take lower paying assignments. Some have to commute on foot to distant places to survive. Divorce and bankruptcy are also major causes for foreclosures.
The house owners should sit up as soon as they get warnings that things are not going right. One should not wait for dues to pile up for two or three months. There is hope that the recent cut in interest rates will allow some house owners to modify their present mortgage opines Tommy Savage, a representative of a local bank. The best thing to do is to restructure the loan and turn to those who can help in that matter. Borrowers may be able to benefit from lowers interest rates provided their credit ratings are satisfactory. The mortgage lenders should be directly contacted.
Bay City Home Program has now a section dealing with foreclosure prevention for those who are in a financial fix, assured its director Carol Smylie. There are many who took the low interest loans but cannot manage the spike and this is leading to foreclosures. Together with this are personal reasons that are unavoidable like ill health, unemployment and break up of marriage.
A workshop scheduled for Saturday includes realtors, lenders, house inspectors and representative of the construction industry. Answers will be given to individual questions and information provided so that people can stand up to foreclosures. There is hope in the horizon will all pitching in for succor.
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